QuestionsQuestions (DOE DEPARTMENT CIRCULAR NO. DC 2004-04-003)
It is issued pursuant to Section 4 of Memorandum Circular No. 55 (Office of the President, 9 February 2004), which directed government agencies to incorporate 1% by volume Coconut Methyl Ester (CME) in their diesel requirements.
To provide guidelines for implementing Memorandum Circular No. 55 on the use of 1% by volume CME in government diesel requirements.
All land transport diesel vehicles owned or registered in the name of departments, bureaus, offices, agencies, instrumentalities of government (including GOCCs) and local government units (LGUs).
CME is fatty ester derived from coconut oil as defined by PNS 2020:2003. CME-Diesel is diesel fuel with a 1% by volume blend of CME and 99% diesel.
Product Registration refers to the fuel additive registration under Section 12 of R.A. No. 8479 and Section 27 of R.A. No. 8749. Accreditation refers to DOE certification to a CME manufacturer/supplier that complies with prescribed technical criteria, including the capacity to manufacture PNS-compliant CME and its distribution network.
DOE is the lead implementing agency. It registers CME products, accredits CME manufacturers/suppliers, monitors CME quality, coordinates stakeholders, and prepares a strategic plan for national goals in development and utilization of CME.
DENR coordinates with DOE and DOTC on emission-testing data to support air-quality standard-setting. DOST (through PCIERD and ITDI) provides R&D support for CME production and application. DOTC monitors and tests emissions of CME-diesel vehicles and provides annual statistics/inventory of government land transport diesel vehicles.
DTI (through BOI) may provide incentives for CME production investments provided the product conforms to PNS 2020:2003. DOF develops and recommends fiscal and nonfiscal incentives for participating petroleum and oleochemical companies.
PCA partners with coconut farmers and industry stakeholders to ensure coconut oil supply through planting/replanting, fertilization, agricultural R&D, and rehabilitation of the coconut industry, and to encourage investments and technology for CME production to meet domestic needs.
Each government agency is solely responsible for blending CME for its diesel fuel requirements.
Only from DOE-accredited suppliers of DOE-registered CME products.
CME suppliers must ensure sufficient supply and efficient distribution. They must make the product available in small packages for government agencies without storage tanks/dispensing pumps using recyclable/refillable containers.
The blend is defined as 1% CME and 99% diesel fuel by volume (e.g., using the Circular’s table: 5 L diesel uses 50 mL CME, rounded for simplicity in implementation).
Government agencies must procure DOE-accredited and DOE-registered CME. CME must be properly labeled (DOE registration number, supplier/accreditation number, batch details, manufacture/expiry). It must be accompanied by a Quality Certificate listing properties such as flash point, water and sediment, kinematic viscosity, copper strip corrosion, cloud point, and acid number, including free/total glycerine.
DOE OIMB and ERTLS conduct random spot sampling and lab testing at manufacturing and distribution levels. DOE Visayas/Mindanao Field Offices sample within their areas and forward to ERTLS. A monthly summary report is submitted to the Policy Advisory Group.
The report must include: (1) source of CME and diesel; (2) purchase price; (3) volume of CME and diesel fuel consumption; (4) mileage; and (5) general observations (e.g., emissions, engine performance).
DOE, coordinated with DOTC, DOST, DENR, PCA, and others, must develop a database of vehicle information and CME-diesel fuel source/volume requirements of covered agencies. It must be accessible to the public in accordance with rules under R.A. No. 6713, and DOE conducts audit on integrity and accuracy.
Any person who violates any provision of the Circular may be imposed the corresponding criminal, civil, and/or administrative sanctions as provided under existing applicable laws, rules, and regulations.